MATIC price rallied towards $1.50 before correcting lower. Polygon bulls must protect the $1.30 zone to start a fresh increase in the near term.
- MATIC price started a fresh rally above the $1.30 resistance against the US dollar.
- The price is trading near $1.32 and the 100 simple moving average (4-hours).
- There is a major bearish trend line forming with resistance near $1.40 on the 4-hours chart of the MATIC/USD pair (data source from Kraken).
- The pair could continue to slide if there is a break below the $1.30 support zone.
Polygon Price Trims Gains
In the past few days, polygon’s price saw a strong increase above the $1.25 zone. MATIC gained pace for a clear move above the $1.30 resistance zone.
The price gained over 25% and it even spiked above the $1.50 resistance. A high was formed near $1.568 before the price started a downside correction, similar to bitcoin and ethereum. The price declined below the $1.42 and $1.40 levels.
MATIC price is trading near $1.32 and the 100 simple moving average (4-hours). It is also just below the 50% Fib retracement level of the upward move from the $1.137 swing low to $1.568 high.
On the upside, an immediate resistance is near the $1.38 level. The first major resistance is forming near the $1.40 zone. There is also a major bearish trend line forming with resistance near $1.40 on the 4-hours chart of the MATIC/USD pair.
Source: MATICUSD on TradingView.com
If there is an upside break above the $1.40 resistance level, the price could start another strong increase. In the stated case, the price could rise steadily towards the $1.48 level or even $1.50.
Downside Break in MATIC?
If MATIC price fails to rise above the $1.38 and $1.40 resistance levels, it could continue to move down. An immediate support on the downside is near the $1.32 level.
The main support is near the $1.30 level. A downside break below the $1.30 level could open the doors for a fresh decline towards $1.220. The next major support is near the $1.20 level.
4-hours MACD – The MACD for MATIC/USD is gaining momentum in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI for MATIC/USD is now below the 50 level.
Major Support Levels – $1.32 and $1.30.
Major Resistance Levels – $1.38, $1.40 and $1.45.